7 charged with defrauding 1,550 troubled Inland Empire homeowners

Seven people were arrested Wednesday in what authorities say was a mortgage modification scam that defrauded more than 1,550 distressed Inland Empire homeowners from 2007 to early 2010.

In a news release, the California attorney general’s office said the victims were illegally charged upfront fees and assured falsely that lawyers would work to lower their loan payments with a money-back guarantee.

The 24-count complaint, filed Monday in San Bernardino County Superior Court in Rancho Cucamonga, accuses the defendants of grand theft, conspiracy and tax evasion.

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Many victimized borrowers went delinquent on their home loans after being told to give the money instead to the alleged con artists to ensure their loans would be modified, Atty. Gen. Kamala D. Harris said in a news release.

The alleged ringleader was identified as Nehad “Nick” Ayyoub, 57, of San Bernardino, president of the Firm Loans, Insurance & Investments Inc., and First Choice Debt Solutions Inc.

Also arrested were Ghydan Ayyoub “Dan” Rabadi, 38, of Los Angeles; Zaid “Zee” Rabadi, 49, of Los Angeles; James Clemons, 55, of Riverside County; Wissam Ismail, 32, of Riverside County; Eddie Mercado, 57, of San Bernardino; and Majid Safaie, 60, of Orange County, according to the attorney general.

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The suspects were booked at Murrieta Detention Center, the Orange County Jail, the Rancho Cucamonga Jail and the Azusa Police Department and held in lieu of bail, the news release said. They could not be reached for comment.

Victims were advised to file complaints online at https://oag.ca.gov/consumers.

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